GDP forecasts

The IMF has again raised its forecast for the world economy. In its twice-yearly World Economic Outlook, the fund said it expects global GDP to increase by 3.1% in 2010, an upward revision to the interim forecast of 2.5% it made in July. The IMF is far more upbeat about prospects for rich countries than it was three months ago. It expects America's economy to grow by 1.5% next year, twice the rate forecast in July. GDP in the euro area is expected to rise slightly, though the fund's forecasters think Britain will grow at a faster rate. Prospects for India were marked down fractionally though its GDP is still expected to grow by a healthy 6.4%. China will remain an important engine for the world economy. The fund reckons its GDP will grow by 9%.